Wang Jianlin made billions speculating on Chinese real-estate; now that he's diversified into buying Hollywood movie studios and chains of movie theaters, the richest man in China is prepared to say what many have known: the Chinese property market is a huge, deadly bubble that's ripe to burst.
The issue is the huge buildout of commercial properties in secondary and tertiary cities -- developments for which there is no demand, created solely to absorb speculators' capital with the promise of quick flips to other, dumber speculators.
The big problem, according to Wang, is that prices keep rising in major Chinese metropolises like Shanghai but are falling in thousands of smaller cities where huge numbers of properties lie empty.
"I don't see a good solution to this problem," he said. "The government has come up with all sorts of measures -- limiting purchase or credit -- but none have worked."
It's a serious worry in China, where the economy is slowing at the same time as high debt levels continue to increase rapidly. There are massive sums at stake in the real estate market: direct loans to the sector stood at roughly 24 trillion yuan ($3.6 trillion) at the end of June, according to Capital Economics.
Billionaire: Chinese real estate is 'biggest bubble in history'
[Jethro Mullen and Andrew Stevens/CNN Money]
(via Naked Capitalism)
When Vancouver tech retailer NCIX went bankrupt, it stopped paying its bills, including the bills for the storage where its servers were being kept; that led to the servers being auctioned off without being wiped first, containing sensitive data -- addresses, phone numbers, credit card numbers, passwords, etc -- for thousands of customers. Also on […]
Jesse writes, "Vancouver tech retailer NCIX was driven into the ground last year (much to the morbid fascination of local techies). Now their fetid corpse is in the news again, after their SQL servers were sold for $1500 at auction without being wiped, containing the personal data – including credit card details – of thousands […]
As I wrote last week, the California Farm Bureau (which lobbies for the state's farmers) struck a deal to gut the state's Right to Repair legislation, a move that will cost farmers their right to fix their own tractors and other heavy equipment.
Gone are the days when you needed to pore over a 400-page physics textbook to learn about weight ratios, aerodynamics, and all of those other STEM concepts that let us take to the skies. Thanks to Force Flyers’ DIY Building Block Drones, you can foster your STEM knowledge as you build and fly your own functional […]
As more companies leverage cloud technology to unite and streamline their operations, the need for capable IT pros increases. But, as any IT guru will tell you, demand alone won’t get your foot in the door to this lucrative field. If you want to cash in on the demand and build a thriving IT career, […]
iOS 12 is finally here, which means now is the best time for aspiring developers to throw their hats into the app development game. While app development can be tricky for some, you can take an intuitive, beginner-friendly approach to understanding app creation and Apple’s latest iOS platform with the iOS 12 & Xcode 10 Bootcamp, […]